The commission will review Facebook's progress next July.
"We are pleased that following three months of rigorous examination, the [Data Protection Commission] report demonstrates how Facebook adheres to European data protection principles and complies with Irish law," Richard Allan, Facebook's director of public policy in Europe, wrote.
Facebook's European headquarters are in Ireland.
Facebook settled charges with the U.S. Federal Trade Commission (FTC) in November that it violated users’ privacy and shared their personal information with advertisers.
The FTC settlement requires Facebook to implement a comprehensive privacy program, including outside privacy audits, for the next 20 years. Facebook is barred from misrepresenting its privacy practices in any way going forward and could face fines of $16,000 per violation, per day, if fails to comply with the order.